Today we're launching payroll computation for Nigeria inside Praxis. This isn't a feature bolt-on or a localized version of a global payroll engine. It's payroll built from first principles for the Nigerian regulatory environment.
Why We Built Our Own
Most payroll solutions serving Nigeria fall into two categories:
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Global platforms with Nigeria as an afterthought. They handle basic salary calculations but struggle with the nuances of Nigerian statutory deductions, state-level PAYE variations, and the specific formats required by regulatory bodies.
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Local solutions that don't integrate. They compute payroll correctly but exist as standalone tools, forcing HR teams to manually bridge the gap between their people data and their payroll data.
Praxis sits in neither camp. Because payroll lives inside the same platform as your employee records, leave management, and organizational structure, we can do things that standalone payroll tools can't.
What's Included
Statutory Deductions
Praxis computes all mandatory deductions based on current Nigerian law:
- PAYE (Pay As You Earn): Progressive income tax calculation with correct application of the Consolidated Relief Allowance (CRA) — 20% of gross income plus the higher of N200,000 or 1% of gross income
- Pension: Employee and employer contributions in line with the Pension Reform Act 2014 (minimum 8% employee, 10% employer)
- NHF (National Housing Fund): 2.5% of basic salary
- NSITF (Nigeria Social Insurance Trust Fund): 1% employee contribution
Multi-State PAYE
PAYE in Nigeria isn't uniform. Each state has its own Internal Revenue Service, and filing requirements vary. Praxis handles multi-state computation for organizations with employees across different states, generating the correct schedules for each jurisdiction.
Payslip Generation
Every pay run generates detailed payslips that break down:
- Gross earnings (basic salary, housing, transport, and custom allowances)
- Each statutory deduction with computation basis
- Voluntary deductions (loan repayments, cooperative contributions)
- Net pay
Bank disbursement is coming in Q2 2026. Once live, you'll be able to process salary payments directly from Praxis to employee bank accounts across all major Nigerian banks.
How It Works With the Rest of Praxis
Because payroll is native to Praxis, it inherits context from the rest of the platform:
Leave integration. Unpaid leave days are automatically reflected in payroll computation. No manual adjustments needed.
Onboarding and offboarding. New employees are added to payroll as part of their onboarding flow. Offboarded employees are automatically prorated for their final month.
Expense reimbursements. Approved expense claims can be included in the next pay run, appearing as a separate line item on the payslip.
Organizational structure. Payroll approvals follow your actual organizational hierarchy, not a separate approval chain configured in a different system.
What's Next
- Q2 2026: Bank disbursement goes live for Nigerian banks
- Q3 2026: Kenya payroll computation
- Q4 2026: Ghana payroll computation and Kenya bank disbursement
Payroll is available now for all organizations on Praxis. If you're currently processing payroll manually or struggling with a tool that doesn't understand Nigerian compliance, request a demo and we'll show you how it works.